Labor urges home break
Lift cap for those building
FIRST home buyers should be given greater access to a scheme that allows them to get into the market sooner, according to the federal Opposition.
Labor housing spokesman Jason Clare said the cap on the first home loan deposit scheme needed to be lifted “to help save the jobs of tradies and help more Australians purchase their first home”.
“Work in the housing construction industry is about to fall off a cliff and estimates by the Master Builders Association indicate 450,000 tradies jobs could be at risk if the Government doesn’t act,” Mr Clare said. “We need to provide more support for the construction of new housing to help keep tradies working and off the dole queue.”
Under the scheme, the Government is the guarantor on the first-home buyers’ loans, which enables first timers to enter the market with as little as a 5 per cent deposit without the need to purchase mortgage insurance.
Mr Clare said a cap for those building new homes should not exist, while the overall 10,000 per financial year cap should be retained for those buying an existing home.
“History shows that stimulating housing has been central to the national recovery from economic shock,” he said.
Mr Clare said according to Housing Minister Michael Sukkar, in the first six months of operation the scheme was likely to hit its cap.
“Labor is therefore calling for the cap to be lifted on the scheme for first home buyers who build new homes, subject to the existing income and price thresholds,” he said.
“The existing cap of 10,000 would remain in place for first homeowners purchasing existing homes.
“This will encourage the construction of more new homes, keep more tradies in work, and increase the nations’ housing stock.”
Mr Clare said before COVID-19 hit, between 160,000 and 171,000 homes were expected to be built this year across the country. Now it is predicted to be as low as 100,000.